[ BUSINESS BRIEFS ]

The TAIEX reversed early gains to end in negative territory yesterday after the index moved closer to the nearest technical resistance point ahead of the 7,600-point level, dealers said.

While market sentiment remained cautious about the global economy, investor confidence was hit by disappointing second-quarter results released by high-tech heavyweights, they said.

The TAIEX closed down 92.06 points, or 1.23 percent, at 7,410.87, after moving between 7,409.02 and 7,564.87, on turnover of NT$112.09 billion (US$3.86 billion).

The construction sector suffered the steepest drop, finishing down 5.2 percent as the government announced measures to curb land hoarding.

Mega Securities will cut unit

The board of Mega Securities Co (兆豐證券), an arm of state-run Mega Financial Holding Co (兆豐金控), yesterday approved a plan to disband one of its two asset management units overseas to boost overall efficiency and cut operational costs, the firm said in a statement.

The dissolution of Mega International Investment Services Co (兆豐國際資產), which is fully owned by Mega Securities, is intended to streamline asset management structures and expenses, the statement said.

Hua Nan bank inks MOU

Hua Nan Commercial Bank (華南銀行), the banking arm of state-run Hua Nan Financial Holding Co (華南金控), yesterday inked a memorandum of understanding (MOU) with the Bank of China (中國銀行) on cooperating in corporate lending, capital flows and personnel exchanges, it said in a statement.

Chang Hwa bank signs MOUs

Chang Hwa Commercial Bank (彰化銀行) yesterday said it signed MOUs with the Bank of China (中國銀行) and Bank of Communications Co (交通銀行).

Chairman Julius Chen (陳淮舟) said his bank would start cooperation and exchanges on syndicated loans, trade finance and personnel training with the two Chinese banks.

Chang Hwa opened its first Chinese branch in Jiangsu Province’s Kunshan in December last year, which has started on its application to conduct yuan business, the bank said.

Asia Cement profits rise 60%

Asia Cement Corp (亞洲水泥) posted a nearly 60 percent increase in net profit for the first half of this year on the back of robust sales in its China operations.

Asia Cement said on Wednesday it recorded NT$5.92 billion in net profit, up 58.82 percent from a year ago. Earnings per share rose to NT$1.92 from NT$1.25 in the first half of last year.

Due to production expansion and rising product prices in China, Asia Cement (China), the company’s Chinese subsidiary, registered 665 million yuan (US$104 million) in net profit during the same period, up as much as 369 percent from a year earlier.

However, Asia Cement said its Taiwanese operations suffered price declines, which resulted from the dumping of low-priced Chinese cement, while production and fuel costs rose, hurting its local profit margins.

NT dollar dips

The New Taiwan dollar continued its weakness yesterday, declining NT$0.016 to close at NT$29.041 as the TAIEX extended losses from the previous session on profit taking, dealers said.

The US dollar regained momentum in the region as hopes for further liquidity easing measures from the US central bank to boost the economy faded to some extent after Washington reported better-than-expected durable goods orders data for last month, they said.